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Equifax launches risk score, portfolio review products

Equifax launches risk score, portfolio review products

09 Dec 2011 The Hindu Business Line

Edition: All editions - Pag 06

Credit information company, Equifax Credit Information Services, on
Thursday launched two new products Risk Score for retail consumers and
Portfolio Review for institutions. Risk Score is designed to predict
the likelihood of a customer defaulting (that is, go 90 days past the
due date for repayment) over the next 12- month period. Customers are
given scores on attributes such as addresses, income, number of credit
cards, nature of existing loans secured or unsecured and so on.
Individual customers can access their risk score and report for Rs
400. For an annual fee of Rs 1,000, customers can get four reports in
a year. While the practice of monitoring individual risk scores and
credit reports regularly is prevalent in the West, it is yet to catch
on India, said Mr Samir Bhatia, CEO and MD, Equifax Credit Information Services.

FOR NEW BORROWERS TOO

The score is available not only for customers who have credit
history, but even for new borrowers. “For new borrowers we give the
score based on demographic profile, locality profile, information on
their jobs, and so on,” Mr Bhatia said. CIBIL, the first credit bureau
set up in India, charges Rs 450 for an individual credit score, but
does not offer the score for new borrowers. The Portfolio Review
services will help banks and financial institutions review trends and
borrowers’ repayment patterns in specific portfolios such as credit
card, and so on. Equifax currently has over 230 members and 14 crore records.